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Chinese Journal of Management Science ›› 2018, Vol. 26 ›› Issue (5): 187-196.doi: 10.16381/j.cnki.issn1003-207x.2018.05.019

• Articles • Previous Articles    

Study on the Cooperation Model Decisions for Hotels and OTAs in the Off-season

LIN Ya-qin1, GUO Qiang2, ZHANG Zhi-wen3, ZHAO Da4   

  1. 1. Tourism College of Hainan University, Haikou 570228, China;
    2. Hainan University Scientific Research Office, Haikou 570228, China;
    3. Hainan Huandao Hotel Tourism Investment Co., Ltd, Haikou 570208, China;
    4. School of Economics and Management of Hainan University, Haikou 570228, China
  • Received:2017-02-01 Revised:2017-06-23 Online:2018-05-20 Published:2018-07-30

Abstract: The occupancy rate is so important to hotel revenue and investment recovery that hotels have to implement revenue management, alleviating the plight of low occupancy rate in the off-season. Fortunately, in the era of Internet Plus, strengthen cooperation with Online travel agents (OTAs) can advance a possible solution to this problem, and right decisions in cooperation modes can further alleviate the predicament, coordinating hotel service supply chain, improving the overall benefits of hotel service supply chain and benefiting hotels and OTAs both. Today, the mainly cooperation modes of hotels and OTAs are the merchant model and the agent model, but which one is better and how should hotels and OTAs make a right decision on model choices? However, there has been still no scholar studying these significant problems. Therefore, establishing Stackelberg static equilibrium models, the optimal cooperation model decisions of one hotel and one OTA in the off-season are discussed, and obtain the optimal results in several common situations are obtained with the method of Graphic and example analysis. The specific research process is as follows. Firstly, through reverse derivation, the optimal decisions of the OTA and the hotel in the merchant model where the OTA is leader and the agent model where the hotel is leader are obtained, preparing for the following comparative study. At the same time, the sensitivity of the key parameters is analyzed. And then, the optimal cooperation model decisions of the hotel and the OTA are demonstrated and obtained base on analysis results above, and it is found that in most cases the merchant model is the best choice for the hotel, but not for the OTA, and they will choose the merchant model when reach agreement in the off-season. It should be noted that, proposing of the case data in this paper is mainly based on a number of online hotel sales information retrieval and pre project in hospitality industry. This study not only provides the cooperation mode decision support for hotels and OTAs in operational significance, but also fills the research vacancy in comparison, selection and optimization of cooperation models of OTAs and hotels, providing a reference for later related researches.

Key words: hotel service supply chain, revenue management, off-season, cooperation model, Stackelberg game

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